Jerome Powell, chairman of the U.S. Federal Reserve, had some harsh words for cryptocurrencies during an appearance before the U.S. Congress.
“They are very challenging because cryptocurrencies are great if you’re trying to hide or launder money, we have to be very conscious of that,” he said.
Powell’s testimony comes hours before the Financial Services Committee is set to host another hearing directly focused on cryptocurrencies.
As previously reported by CoinDesk, the committee hearing will hone in on the question of whether cryptocurrencies are a new form of money.
A memo published after the hearing was announced notably states that members will examine “the extent to which the U.S. government should consider cryptocurrencies as money and the potential domestic and global uses for cryptocurrencies.”
Speaking before the House Financial Services Committee, US Federal Reserve Chairman Jerome Powell, stated that the authority has no objective to ban cryptocurrencies. According to Powell, who responded to his earlier comments that cryptocurrencies could be replaced by a central bank digital currency (CBDC), the crypto market should be regulated in accordance with existing laws.
According to CNBC, US central bank’s chair Jerome Powell has asked investors to be cautious while investing in cryptocurrencies. Speaking to the members of the Congress on Wednesday, he warned people about serious risks they could get exposed to if they invest in digital currencies.
The crypto market suffered in 2022 as many assets fell from their 2021 all-time highs. The bearish trend reduced people’s confidence in digital assets resulting in a panic sell-off of tokens. However, some investors saw the bearish trend as an opportunity to accumulate digital assets and earn later. In a recent development, the CEO of […]
A New Zealand hedge fund, NZ Funds Management, which had $350 million worth of assets under management at the end of December 2020, says five percent of its money is invested in bitcoin. According to the firm’s CIO James Grigor, bitcoin is also set to be featured in more of its Kiwisaver investment schemes within […]
Hedge fund manager Bob Prince has warned that the recent sell-off in the U. S. government bond market could accelerate and this could “threaten high-flying assets” like cryptocurrencies and blank cheque companies.
American publisher Steve Forbes has attacked bitcoin’s fixed supply saying this feature actually curbs the ability of the crypto to “meet the needs of a growing economy. ” He also argues that bitcoin cannot replace the dollar because it is presently too volatile to function as money.
A report by JPMorgan & Chase Co. states that the rise in the popularity of central bank digital currencies (CBDC) could spell doom for the U. S. dollar that enjoys unquestionable hegemony in dictating the global economic order today, Bloomberg reports June 22, 2020.
On Sunday, the U. S. Federal Reserve slashed the benchmark short-term rate by 100 basis points bringing it to zero. In addition to the rate cut, the Fed promised $700 billion in bond purchases and eliminated all reserve requirements for smaller financial institutions.
The world’s major central banks are waging war to determine who can make their respective fiat currency weaker. With the likelihood of even more money printing and negative interest rates ahead, people need to be ready to see the value of their money evaporate and the price of everything else go up.
